QUESTION 2 The web page of each bank in Turkey has a financial calculator that will prepare a loan amortization table based on your inputs. If you follow the "Auto Loan Calculator link, you can calculate the monthly payments of your loan and this link will prepare a payment plan for your loan. Suppose that you want to buy an automobile with a bank loan. Search for different auto loans of different banks in Turkey and choose the most appropriate one for you. Give the name of the bank. Determine how much you want to borrow and in how many years you can pay it back with monthly payments by yourself. 1. What is the Annual Percentage Rate (APR) (Nominal rate) on this loan? What is the Effective Annual Rate (EAR)? (10 points) (SHOW YOUR CACULATIONS) 2. Prepare loan amortization table (payment plan) by using the calculator on the web page of the bank for the loan you choose with monthly payments at the rate quoted by this bank. (10 points) (UPLOAD THE PAYMENT PLAN OF YOUR LOAN TO SAKAI) 3. What is the monthly payment? What percentage of your first month's payment is the principal? What percentage of your last month's payment is the principal? What is the total interest paid on the loan? (20 points) (SHOW YOUR CACULATIONS) QUESTION 2 The web page of each bank in Turkey has a financial calculator that will prepare a loan amortization table based on your inputs. If you follow the "Auto Loan Calculator link, you can calculate the monthly payments of your loan and this link will prepare a payment plan for your loan. Suppose that you want to buy an automobile with a bank loan. Search for different auto loans of different banks in Turkey and choose the most appropriate one for you. Give the name of the bank. Determine how much you want to borrow and in how many years you can pay it back with monthly payments by yourself. 1. What is the Annual Percentage Rate (APR) (Nominal rate) on this loan? What is the Effective Annual Rate (EAR)? (10 points) (SHOW YOUR CACULATIONS) 2. Prepare loan amortization table (payment plan) by using the calculator on the web page of the bank for the loan you choose with monthly payments at the rate quoted by this bank. (10 points) (UPLOAD THE PAYMENT PLAN OF YOUR LOAN TO SAKAI) 3. What is the monthly payment? What percentage of your first month's payment is the principal? What percentage of your last month's payment is the principal? What is the total interest paid on the loan? (20 points) (SHOW YOUR CACULATIONS)
